Zeek receiver seeks first round of fees, expenses

Published: Friday, November 16, 2012 at 4:30 a.m.

Last Modified: Thursday, November 15, 2012 at 5:26 p.m.

The receiver for Zeek Rewards is requesting more than $850,000 for him and his team for about 45 days of work.

In his first interim application for fees and expenses, court-appointed receiver Kenneth Bell requested about $768,102.23 for him and his counsel at McGuireWoods LLP of Charlotte. The receiver also requested about $85,389.06 for a retained forensic accountant and database consultant, FTI Consulting, for its work in the case.

Bell, his constituents at McGuireWoods and FTI, the three entities that make up the "receiver team," have been working since mid-August to recover money connected to Zeek Rewards. The company, headquartered in Lexington under the parent entity Rex Venture Group LLC, has been charged by the federal government of operating one of the densest Ponzi schemes of all time. The company's owner, Lexington resident Paul Burks, has already settled securities fraud charges filed by the U.S. Securities and Exchange Commission, without admitting or denying the agency's accusations.

The receiver is requesting compensation and reimbursement from Aug. 17 through Sept. 30. During that period, Bell said he and his team worked a total of about 2,226 hours on tasks ranging from operating the receivership estate, to investigating the company's financial condition, to analyzing "terabytes" of information, to locating and identifying foreign bank accounts connected to Zeek Rewards or Rex Venture Group.

Court records show that Bell, himself, charged an hourly billing rate of about $612 per hour and worked about 189 hours during the compensation period, totaling about $115,790. Bell, as well as his counsel of about 30 McGuireWoods attorneys, partners and paralegals, charged 15 percent lower than their normal rates, according to court records.

FTI, the company retained as the forensic accountants, litigation and database consultants for the case, expended about 200 hours during the compensation period from August to September. They are seeking about $82,430 for work associated with the case, a discount of about 23 percent from the company's normal rates, Bell said.

Check back later for more updates on this story.

Nash Dunn can be reached at 249-3981, ext. 227, or at nash.dunn@the-dispatch.com.

<p>The receiver for Zeek Rewards is requesting more than $850,000 for him and his team for about 45 days of work.</p><p>In his first interim application for fees and expenses, court-appointed receiver Kenneth Bell requested about $768,102.23 for him and his counsel at McGuireWoods LLP of Charlotte. The receiver also requested about $85,389.06 for a retained forensic accountant and database consultant, FTI Consulting, for its work in the case.</p><p>Bell, his constituents at McGuireWoods and FTI, the three entities that make up the "receiver team," have been working since mid-August to recover money connected to Zeek Rewards. The company, headquartered in Lexington under the parent entity Rex Venture Group LLC, has been charged by the federal government of operating one of the densest Ponzi schemes of all time. The company's owner, Lexington resident Paul Burks, has already settled securities fraud charges filed by the U.S. Securities and Exchange Commission, without admitting or denying the agency's accusations.</p><p>The receiver is requesting compensation and reimbursement from Aug. 17 through Sept. 30. During that period, Bell said he and his team worked a total of about 2,226 hours on tasks ranging from operating the receivership estate, to investigating the company's financial condition, to analyzing "terabytes" of information, to locating and identifying foreign bank accounts connected to Zeek Rewards or Rex Venture Group.</p><p>Court records show that Bell, himself, charged an hourly billing rate of about $612 per hour and worked about 189 hours during the compensation period, totaling about $115,790. Bell, as well as his counsel of about 30 McGuireWoods attorneys, partners and paralegals, charged 15 percent lower than their normal rates, according to court records.</p><p>FTI, the company retained as the forensic accountants, litigation and database consultants for the case, expended about 200 hours during the compensation period from August to September. They are seeking about $82,430 for work associated with the case, a discount of about 23 percent from the company's normal rates, Bell said.</p><p>Check back later for more updates on this story.</p><p>Nash Dunn can be reached at 249-3981, ext. 227, or at nash.dunn@the-dispatch.com.</p>